As the number of direct overseas purchases made by Korean consumers spike every November, the Korean Customs Service (KCS) conducted a special 10-week crackdown last year over a period covering China's Singles' Day (Nov. 11, 2022) and the American Black Friday holiday (Nov. 25, 2022), and recently released a report on the results. 

During their crackdown, the KCS monitored vendors facilitating direct purchases of products from overseas, and identified 97 vendors that had engaged in illegal activities that resulted in a total penalty amount of KRW 81 billion. The goods seized from these vendors mainly comprised food/medicine/cosmetics (penalty amount of KRW 42 billion), bags/shoes/fashion accessories (penalty amount of KRW 14 billion), electric/electronic goods (penalty amount of KRW 8 billion) and exercise and leisure gear/stationery (penalty amount of KRW 5 billion).

Some key seizure cases noted by the KCS in their report were as follows.

• One vendor illegally obtained the personal information of approximately 100 consumers, and used their information to import counterfeit goods "for personal use" (and thus exempt from certain approval/reporting requirements) which they then subsequently sold as genuine products: Goods were identified and seized based on violation of the Trademark Act
• One vendor imported children's toys without obtaining the required safety tests and certifications: Goods were identified and seized based on violation of the Special Act on the Safety of Products for Children 
• One vendor imported electronic products such as laptops and mobile phones bearing marks imitating well-known domestic/foreign trademarks as "personal use" goods: Goods identified and seized based on violation of product safety certification standards implemented under various applicable laws

The crackdown highlighted that many vendors have been using direct overseas purchasing channels as a way to sell counterfeits in Korea by exploiting the laws applicable to importation of "personal use" items. Goods imported for "personal use" are not considered to be "use of a trademark" under the Korean Trademark Act and thus do not constitute trademark infringement. Further, importation of "personal use" items are generally subject to a simplified clearance procedure, and usually do not require import declarations or proof of testing or certifications to be presented at the time of importation. 

However, the highlighted KCS seizure cases also indicate that other laws might be applicable to block or enforce against counterfeits even if they may be outside the scope of the Trademark Act, such as the Special Act on the Safety of Products for Children and the Electrical Appliances and the Consumer Products Safety Control Act.